Tesla shares downgraded by CFRA as hot stock loses massive index fund buying tailwind

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Vehicles sit parked outside the Tesla Inc. solar panel factory in Buffalo, New York, U.S., on Wednesday, Dec. 26, 2018.
Andrew Harrer | Bloomberg | Getty Images

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Tesla drew a downgrade from Wall Street during Friday afternoon trading in its last day outside of the S&P 500.

CFRA cut its rating on Tesla equity to hold from "Strong Buy" and advised its clients that much of the bullish case behind the electric car maker is now in its price.

"With TSLA's addition to the S&P 500 Index effective as of Monday's open, we lower our opinion to Hold as the tailwind of massive index fund buying subsides," the firm wrote.

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